Are you only meeting the minimum requirements for auto insurance? If so, you might not be eligible for a stolen car insurance payment if your vehicle is stolen. In this article, we’ll explore how insurance companies handle stolen car reports and what coverage you need to ensure proper reimbursement.
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Can You File an Insurance Claim for a Stolen Car?
You can only file an insurance claim for a stolen car if you have the right coverage. Full coverage allows you to file a claim for theft, while lacking this coverage leaves your stolen car unprotected. It’s important to understand how insurance companies value your vehicle. They won’t cover the purchase price due to depreciation. Instead, they’ll look at the value of your car on the day it was stolen, known as the actual cash value or fair market value. To process your claim, the insurance company will require a copy of the police report and will interview you about the circumstances surrounding the theft.
If Your Vehicle is Repossessed
If your stolen vehicle is recovered before your claim is closed, it is treated as a damage claim. The insurance company determines the cost of repairs based on your state’s threshold. If the damages exceed this threshold, your claim will be considered a total loss.
If Your Vehicle is Not Recovered
If your stolen vehicle is not recovered during the time your claim is open, it is considered a total loss. The value of your car will be determined based on comparable sales in your area. After subtracting your deductible from the assessed value, the insurance company will provide you with a check to compensate for the remaining loss.
What Kind of Insurance Covers a Stolen Car?
While all states require minimum liability coverage, this basic insurance doesn’t cover theft. You need comprehensive coverage for that. If you only have the minimum coverage required by your state, you won’t be insured in case of a collision or theft. Consider adding comprehensive and/or collision insurance to your policy.
Will Comprehensive or Collision Coverage Help with Payment?
Comprehensive coverage comes into play when your car is damaged due to natural disasters, vandalism, or theft. On the other hand, collision coverage pays for damages resulting from accidents with other vehicles or objects. Though comprehensive coverage is more expensive, it provides peace of mind in unexpected situations.
The extent of coverage you choose affects your rates. Additionally, the deductible amount you select influences your rates. Higher deductibles mean lower rates, but it also means the insurance company pays less for a claim. Therefore, choose a deductible you can afford without leaving yourself without a vehicle.
Will a Theft Claim Increase Auto Insurance Rates?
If you are at fault or negligent during a theft claim, it can cause your insurance rates to increase. However, opening a claim to recover your loss when your vehicle is stolen through no fault of your own should not affect future insurance rates. Keep in mind that this may vary depending on the insurance company and your claims history. Shop around with multiple insurers to find the coverage that suits you best.
What You Need to Know to Get a Stolen Car Insurance Payment
Before purchasing auto insurance, discuss the details of your policy with your insurance company. Make sure you have the right coverage for all situations, including auto theft. To protect your vehicle, consider a comprehensive auto insurance policy that covers theft. Opt for a comprehensive and collision package with reasonable deductibles to ensure you’re properly protected and never left without compensation.